Pre-Trading Thoughts

Al Ahly Pharos

In line with our expectation, the CBE left interest rates unchanged after its MPC Committee met on Thursday.

A coalition of Chinese companies has been established to develop a 1 million feddan integrated farming zone in the New Valley Governorate.

Planning and International Cooperation Minister Rania Al Mashat met with a delegation from the European Union to discuss unlocking EUR1.8 billion in investment guarantees from the bloc.

The government is planning to slash customs clearance times to two days by 2025, Investment Minister Hassan El Khatib said.

The Senate will vote on a bill that aims to tighten restrictions on those aiming to join the importers registry, stipulating that those aiming to join the register should have a capital of at least EGP500k, and for limited liability companies to have a paid up capital of at least EGP2 million.

A group of Saudi families intend to pump investments of USD150 million into the Egyptian market in the coming period, according to the head of Business City Group, an investment advisory company.

The Suez Canal Economic Zone (SCZone) signed a land usufruct agreement with ORAS subsidiary, Orascom Industrial Parks, for its already announced EGP13 billion integrated industrial complex planned for the Sokhna Industrial Zone.

A consortium of international institutions is to provide some USD106 million in new funding to the Red Sea Wind Energy (RSWE) — a JV between ORAS, France’s Engie, and Japan’s Toyota Tsusho/Eurus Energy.

PHDC and Marriott International signed an agreement to establish The Ritz-Carlton Residences.

CCAP sent a release concerning an administrative seizure by the Egyptian Customs Authority on ERC for a total amount of EGP379 million representing tax differences and customs duties due for 15 customs declarations, in addition to additional added tax (VAT ). In conclusion, the negotiations between the Egyptian General Petroleum Corporation and the Customs Authority on 20 November 2024 successfully led to the Customs Authority lifting the administrative seizure.

A consortium of local banks is currently studying a USD100 million syndicated loan for the Egyptian Bioethanol Company (EBIOL) to build its bioethanol factory in Damietta with a capacity of 100k tons per year. We note that SKPC owns 7.5% of EBIOL.

We updated our FV of PHAR to EGP63.25/share and maintain Overweight.

PHAR’s USD100 million biopharma factory is set to launch operations in 1Q25, according to a Health Ministry statement. The factory aims to localize the production of biologics and biopharmaceuticals both in terms of their final products and as active ingredients.

HRHO’s commercial bank, Bank NXT, signed a cooperation protocol with the Urban Development Fund (UDF) to provide mortgage financing to individuals purchasing UDF units in governorates across the country.

National Investment Bank (NIB) sold almost its full stake of 9.99% in MBSC in a deal worth EGP287.3 million. NIB sold 6.11 million shares at a price of EGP47.00/share.

A number of car agents are negotiating with El Nasr Automotive to use its production lines to locally assemble some of their models during the coming period.

The contracts of beet sugar producing companies recorded an increase during the current season, supported by an increase in the cultivated area of beets by 16% since the start of the planting season last August until 10 November.